january 7, 2025
How high is US debt? Key things to know
The US national debt has been in the news recently after Elon Musk raised his concerns that it has reached unsustainable levels.
In December 2024, the US debt hit a record high of $36 trillion, eclipsing the country’s GDP of $29.37 trillion.
The US debt currently stands at 125% of the country’s GDP, and some experts project that it will reach 200% by 2050.
Source: report.az
US debt accounts for about 34.6% of the world’s total government debt, which is estimated to be around $102 trillion.
Data: visualcapitalist.com
The US has the world’s highest total federal debt, larger than the next four countries with the highest debt combined.
Data: visualcapitalist.com
In 2024, the US spent over $1 trillion on interest payments, accounting for 23% of federal revenue.
As of September 2024
In 2000, the country’s debt stood at $10.31 trillion and has since surged about 251% to the current level.
The debt spike beginning in 2000 was triggered by events such as the Afghanistan and Iraq Wars, the 2008 subprime crisis, and the COVID-19 pandemic.
Source: fiscaldata.treasury.gov
Between FY19 and FY21, US debt increased by about 50%, mainly due to tax cuts, stimulus programs, increased government spending during the COVID-19 pandemic.
Source: fiscaldata.treasury.gov
The US has never defaulted on its debt obligation, thus its repercussions remain unknown. However, a default would have a catastrophic impact on the US and foreign markets.
Source: fiscaldata.treasury.gov
10 countries with the highest debt in 2024
Thanks for reading!
See next